Germany's fourth largest occupational pension fund has been forced to cancel plans to increase its allocation to hedge funds after the nation's Finance Ministry abruptly backtracked on rules allowing investment in hedge funds of funds to be raised, citing concerns about the credit crisis.

Nordrheinische Aerzteversorgung, a pension fund for medical doctors in North-Rhine Westphalia, had hoped to increase allocation to hedge funds from 4.1% to 7%.